Migrant remittances : an overview of global and Swedish flows

Abstract

Migrant remittances – money and gifts sent to relatives back home – have attracted increasing international attention. The flow of remittances has become a major source of revenue for developing countries, exceeding the volume of aid. Three recent studies at Uppsala University bring this issue to light in the context of Sweden’s Policy for Global Development. Very little has so far been known about the flow of remittances from Sweden; official data indicate an amount exceeding 4 billion kronor in 2006. The real flows are most likely higher; Swedish and international studies estimate that real remittances are 30-50 per cent above the officially recorded amounts. Statistics Sweden (SCB) is recommended to enhance its records of remittances in terms of desirable scope and reliability, for instance regarding specification of the amounts remitted to different countries. Remittance flows from Sweden are linked to the remitters’ incomes and, hence, vary with the business cycle. Experience suggests that the ongoing world economic crisis will have a negative impact on remittance flows also from Sweden. It is suggested that enhanced knowledge in Sweden about available remittance services and their costs and measures to promote a better functioning remittance market could increase the net value of these money.